Nishimatsu   The JAL Group has a corporate philosophy of contributing to a safer and more peaceful world through its business activities. I would like to ask you, Ogata-san, as a tireless campaigner in your capacity as UN High Commissioner for Refugees and through Japan International Cooperation Agency (JICA), what contribution can private companies make?
Ogata   JAL has operated international routes for a long time, and deals with different people around the world every day, so I think you as a company have long been keenly aware of these issues. With JAL's help, JICA was able to quickly send relief supplies and international disaster relief teams to affected areas after the Sichuan earthquake and Myanmar cyclone last year.
Nishimatsu   Yes, in May 2008 we were involved in two major international disaster relief efforts. Normally, it takes at least a month to arrange a charter flight, but thanks to our repeated advance training exercises in transporting emergency relief supplies, we were able to organize charter flights to the disaster areas in less than a day.
Ogata   Getting so many people out to the affected areas at once was a real help. I was delighted at this new stance on the part of Japanese companies. Disaster relief teams were first deployed about 20 years ago, but until recently charter flights using Japanese airlines were very expensive, and decisions to operate an emergency flight took too long. Because even small delays could make the difference between life and death, we had to ask airlines of other countries to help.
Nishimatsu   Recently, the public has come to expect companies to take the initiative in corporate social responsibility (CSR) activities; both society and customers look at things differently now. We too are now committed to promoting humanitarian aid. To arrange charter flights to places where there are no regular flights, like Yangon in Myanmar, we have to confirm flight safety beforehand, and then, on the day of departure, get the crew and ground staff to work closely together to ensure everything goes smoothly. I think that our long experience in this kind of operation is one reason why we were asked to help.
Ogata   About 2 years ago, at the Davos (annual World Economic Forum) summit, there was discussion when some representatives of business expressed their willingness to participate in humanitarian support if a suitable framework were created. There were exchanges about how companies could help in transportation, medical and other areas when emergency situations occur. Now we have started preparations to realize these ideas. For example, UPS of the the United States (the world's largest small-package shipping company) say their job is to deliver goods around the world, and so have pledged to deliver anywhere, to anyone. Materiel and personnel can be required urgently anywhere for humanitarian reasons, so we are setting up a network of companies willing to join an emergency mobilization network. Has JAL received requests from governments other than Japan's in this regard?
Nishimatsu   No, only from Japan at the moment. We also supported relief measures after disasters in Turkey and Italy, but we acted on our own initiative there. There is no international mechanism for making such requests. What was discussed at Davos was a great thing, I think. For companies to provide support on a sustained basis, organization and systems are important. I believe JAL will be called on repeatedly in the future to help with emergency relief assistance in terms of personnel and materiel. And airline employees tend to be more aware of humanitarian issues, and so are more likely to respond positively to requests for volunteers.
Ogata   I will mention your views at Davos. The JAL Group can do still more for a more peaceful and safer world.

Nishimatsu   We are seeing more natural disasters around the world due to climate change. It is said that 2% of the world's carbon dioxide emissions come from aircraft, and cutting this figure is one of the major social responsibility tasks that we face. In the 20 years from 1990 to 2010, we have a 20% reduction target for carbon dioxide emissions, and we had already managed an 18% cut by the end of March 2009.
Ogata   In today's globalized world, it is impossible to avoid flying, but I have heard airlines are taking many significant steps to cut emissions.
Nishimatsu   Indeed. First, there is hardware. We would gain major benefits simply by switching to new more fuel-efficient aircraft. Then there is the question of power use. For example, large amounts of carbon dioxide are given off by on-board auxiliary power units (APUs) for lighting and air conditioning while a plane is taxiing or waiting for takeoff on the ground. This could be reduced by providing an external power supply. And new flight software can help pilots avoid sudden acceleration and deceleration and enable them to perform "eco-flights" with low emission levels at takeoff and landing, without compromise to safety standards.
Ogata   After hybrid cars, is there any immediate prospect of hybrid aircraft?
Nishimatsu   Not at the moment, unfortunately. For now, we depend on fossil fuels, but we are considering switching to biofuels in the future. In fact, in January 2009, the first demonstration flight in Asia using biofuel was made by a JAL aircraft.
Ogata   Did the plane fly OK?
Nishimatsu   Yes, it did. The pilots reported that the biofuel supplied the same power as conventional fuel. In terms of fuel grade, there are no issues surrounding biofuel. On the supply side, innovation is making mass production feasible, and we expect biofuel eventually to be available in stable volume supply and at competitive prices. We have also cooperated with global warming studies. To analyze atmospheric CO2 concentration and composition, we have taken samples of upper atmosphere air during a flight, and provided it to research institutions. Such data is valuable for understanding the mechanism of global warming, and as such is attracting attention in Japan and abroad.

Ogata   The recent emergency landing on water by a jetliner in the Hudson River was a reminder of how important it is for people to feel safe when they board an aircraft.
Nishimatsu   It seems both engines lost thrust simultaneously. Even in such circumstances, it was already known that a water landing was possible in theory. However, I salute the decision to land in the Hudson. The pilot was near retirement age, and that kind of judgment cannot be made without years of experience. Had he crash-landed anywhere else, rescue operations would have been difficult and disaster would have been the very likely outcome.
Ogata   That incident really made me appreciate that the most important things for an airline are safety and reliability.
Nishimatsu   The JAL Group operates 1,100 flights a day now. Ensuring safety on each of them is our main priority as an organization. We need to find ways to ensure that the skills and experience of veteran pilots in dealing with extraordinary situations are passed on. Air operations are not only about pilots. There are also maintenance staff, cabin crews and other staff to consider. It is a business that relies heavily on human resources. If our employees notice a problem in the field and deal with it on their own initiative, this raises levels of safety, quality and customer satisfaction, strengthening the Company all round.
Ogata-san, I understand that you too, in your work at conflict or disaster scenes around the world, probably likewise rely on the principle of reacting to actual on-the-spot circumstances.
Ogata   It is not really so much about "principles." If your job is providing various kinds of assistance to developing countries, you realize that it is a mistake to force aid on people under standards set by headquarters without knowing the reality of local life and conditions. If you try to follow headquarters, their values and expectations can run into a different reality on the ground. So we have a lot of local office personnel, and they put forward proposals only after studying what is happening around them. Then headquarters respects their proposals more highly. The idea is that development assistance is not there to benefit the provider.
Nishimatsu   What you have just been saying goes for our work too. If you remain stuck in the headquarters building, you cannot understand where customer needs lie. Airport staff and cabin crews are the first people to get wind of customer opinions, and they can respond sensitively to customer needs on the spot. Whatever decisions management makes, there are times when they just do not suit the actual circumstances.
Ogata   Yes indeed. A leader has to see things with his or her own eyes, and do the legwork to confirm the situation. I also think it is important to keep giving staff encouragement. This is because your staff are your colleagues, people that you work with every day, in refugee support offices and other locations where conditions can be quite demanding.
Nishimatsu   Yes indeed. It is important that managers give encouragement, ensure that decisions get people moving in the field and offer support.

Nishimatsu   In the middle of 2008, the global financial crisis occurred. I have recently often been reminded of the collapse of the Soviet bloc 20 years ago. At that time, I was in Germany, and saw the fall of the Berlin Wall nearly at first hand. Since that time, I have felt that capitalism has fallen prey to a spirit of triumphalism. There was a conceit that everything would be OK as long as people had economic freedom and engaged in profit-making activities. Now, 20 years later, a backlash is underway.
Ogata   That's probably true. I was traveling around Europe at that time too, and I also visited Berlin. After that I was engaged by the UN in refugee support. There was a feeling that the collapse of the wall would usher in a new age of peace, but instead a number of long-buried problems burst into the open, civil strife worsened, and the number of refugees increased. And then the Balkans became embroiled in a refugee crisis, causing enormous headaches.
Nishimatsu   When there is freedom of action, everybody must behave in an ethical way to ensure the best outcomes. But the process of fostering broad-based ethics somehow fell by the wayside, and economically things got out of hand.
Ogata   The current economic crisis is going to affect the poorest sectors of global society, given the current climate of globalization. JICA also is making efforts to ensure support for the poorest segments of populations of Africa and Asia and to protect the poorest people from major harm. Moreover, because you cannot do this in a half-hearted way, we are making every effort to deliver aid as quickly as possible.
Nishimatsu   Greater efficiency is what is demanded by the financial sector, but there are some things that cannot be sacrificed. Saving them is a matter of social responsibility. Social guarantees are needed at the national, social and global levels to act as a safety net when bad times come.
Ogata   Even advanced countries are looking after number one now, and have no sympathy to spare for those overseas who suffer most. In Japan too, with increased movement of people and goods, there is progress but sometimes regression occurs as well. For example, the problems of unemployment and care of the elderly. Social disparities are growing wider, and we have to make people aware of this.
Nishimatsu   Even with increased exchange of goods and people, and the economy picking up, extreme poverty continues to exist, and I think this is unacceptable for society. If the fruits of economic activity do not contribute to a better world, there is no point to them. Companies should not only put profit first, but should regard as their bottom line the interests of society overall. It should not only be the people who can afford such a luxury who worry about social obligations; all business activity should be predicated on the benefit to society as a whole that results from it. We need to revise the way things are done in the world, and rewrite the rules.
Ogata   Yes, I agree, those are the sort of times we are living in now.
Nishimatsu   Even under these circumstances, there are expectations of some rebound in the economy due to the growth of emerging economies such as China and India. I think it's a good thing for the world economy that emerging countries are now flexing their muscles. Resolving the issue of poverty around the world, and raising living standards in the developing world, will, in the final analysis, be a positive for advanced countries as well.
Ogata   JICA is also adjusting its activities to these trends.
Nishimatsu   Finally, I would like to ask you if you have any advice for the 50,000 employees of the JAL Group on how we can grow into a company that does even more to meet its social responsibilities.
Ogata   I expect the aviation industry to become even more important to all aspects of global transportation in the future. The staff of the JAL Group fly overseas frequently, and have opportunities for contact with people in different countries. They see not only advanced countries with major airports, but also the less visited parts of the world, and have contact with people in developing countries. This broadens their outlook.
Nishimatsu   To understand and respond to people's various needs around the world is very important to our corporate social responsibility efforts too. Thank you very much.